What Is Wonderland (TIME)?
is one of the most popular and most successful Olympus DAO forks. It was the first decentralized reserve currency protocol available on Avalanche. Each unit of TIME is backed by different reserve assets like Magic Internet Money and liquidity tokens. This mechanism, which was copied from OHM, ensures that TIME has an intrinsic value it cannot fall below.
Through a series of economic and game-theoretic dynamics, Wonderland aspires to build a policy-controlled currency system on the AVAX ecosystem. TIME becomes the ecosystem's unit-of-account and medium-of-exchange currency. The token's declared short-term goal is to optimize growth and weather creation. Instead of aspiring to reach a pegged value like an algorithmic stablecoin, TIME should, over time, reach a stable value backed by a basket of goods that does not include any fiat currency.
Who Are the Founders of Wonderland?
Although TIME was officially created by an anonymous team, it is closely aligned with Abracadabra.money, a lending platform using interest-bearing tokens to create Magic Internet Money, an algorithmic stablecoin. Abracadabra was founded by Daniele Sesta, an Italian web3 developer who also invented Popsicle Finance and is considered one of the most important developers in the DeFi space.
Although Wonderland does not have official partnerships with Olympus, the two protocols co-exist in a rivalrous and complementary way. On the one hand, Wonderland lured away many of Olympus' stakers by offering more attractive yields, yet OHM stakers can also borrow against their collateral on Abracadabra.money.
What Makes Wonderland Unique?
Even though Olympus sparked an abundance of forks that wanted to cash in on its mechanism to acquire protocol-controlled liquidity, Wonderland stands out as one of the first and, therefore, one of the most successful forks of the original protocol.
The basic mechanism utilized by Wonderland is identical to that of Olympus. Each unit of TIME is backed by a treasury consisting of MIM and various liquidity tokens. Were TIME to fall below its backed value, the treasury would buy back and burn TIME to push the price back above its floor. However, there is no upside limit to the price of TIME.
Individuals can choose between two different investment strategies: bonding and staking. Bonding equates to minting new TIME and buying it from the treasury for a discount. After a vesting period of five days, bonders can choose to stake their newly-acquired TIME or sell it on a secondary market. Bonding is an active investment strategy since new TIME is vested linearly over the 15 epochs, with each epoch consisting of eight hours. Bonders can decide after each epoch whether to stake or sell, depending on the price action.
Staking is a passive investment strategy that allows the accrual of TIME via auto-compounding. Each staked unit of TIME automatically increases every epoch (eight hours) based on the current APY. That way, stakers benefit from the expansion of TIME supply and keep their share of TIME constant relative to the total supply. Since the APY offered on staked TIME is close to 90,000%, stakers benefit from maximizing the time they stay staked and expanding their share of the entire supply. Therefore, the price of TIME is only of secondary importance, as the massive APY can outperform a falling price.
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Read our deep dive into Olympus DAO.
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How Many Wonderland (TIME) Coins Are There in Circulation?
The total supply of TIME has no cap, as TIME aspires to reach a stable valuation in the long term. Currently, each unit of TIME is backed by roughly $1,700 of reserve assets in the treasury. The treasury balance of Wonderland is just short of $700 million, with a runway of almost 400 days. That means Wonderland could pay staking rewards for 400 days even if it has no new revenue coming in through acquiring reserve assets via bonding.
The total value locked of Wonderland is the biggest of any Olympus DAO fork and stands at over $1 billion.
How Is the Wonderland Network Secured?
Wonderland launched on Avalanche. The Avalanche consensus mechanism is distinct from proof-of-stake or proof-of-work since it does not have one leader processing transactions that others validate. Instead, nodes process and validate transactions simultaneously, with validators' random polling ensuring that transactions are correct with statistical certainty. Therefore, near-immediate finalization can be achieved, significantly improving the blockchain's speed.